Please activate JavaScript!
Please install Adobe Flash Player, click here for download

GSR 2015

72 02 MARKET AND INDUSTRY TRENDS New and vital markets are developing elsewhere in Asia, including in Indonesia, Mongolia, Pakistan, the Philippines, Thailand, and Vietnam.21 The Philippines completed Southeast Asia’s largest individual wind project (150 MW) to date, and commissioned a second large project (81 MW) in 2014.22 Pakistan added 150 MW for a year-end total of 256 MW, followed in the region by Japan (130 MW), where wind development has been delayed by cumbersome environmental impact assessment procedures.23 India was the world’s fifth largest market (2.3 GW, up 34% over 2013) and remained fifth globally for cumulative capacity (22.5 GW).24 The European Union yielded its position as the top region for cumulative wind capacity to Asia in 2014, although the EU market was up 4% over 2013.25 The region saw its second highest installations ever (after 2012), due largely to Germany.26 Wind accounted for the largest share of new EU power capacity (nearly 44%) in 2014, followed by solar PV.27 More than 11.8 GW of wind capacity (a net increase of 11.4 GW) was added to the EU’s grids, for a total approaching 129 GW.28 By year’s end, 16 EU countries had more than 1 GW in operation.29 Even so, investments in wind power in the region are being undermined by regulatory and political uncertainty, leading to increased concentration in the few countries with stable frameworks.30 Germany and the United Kingdom accounted for 59% (46% in 2013) of new EU installations.31 Germany surpassed its 2013 record, adding nearly 5.3 GW to the grid in 2014.32 Considering decommissioned onshore capacity (nearly 0.4 GW), Germany’s capacity increased by 4.9 GW for a year-end total of 39.2 GW (including offshore capacity not yet grid-connected, it totalled 40.5 GW).33 The strong market onshore was driven at least in part by the availability of new wind priority areas in several regions and by revisions to the Renewable Energy Sources Act (EEG), including an end to the repowering bonus after 2014.34 More than 1.1 GW, or at least 24% of onshore installations in 2014, was for repowering.35 Germany’s gross generation from wind power was 56 TWh (up from 51.7 TWh in 2013).36 The United Kingdom added 1.7 GW to the grid for a year-end total of 12.4 GW; 36% of the total operates offshore.37 UK wind capacity generated 31.5 TWh in 2014, accounting for 9% of total electricity supply.38 Other top markets included Sweden (1.1 GW) and France (1 GW), both seeing significant increases over 2013 and closing the year with 5.4 GW and 9.3 GW, respectively.39 Several previously important markets—such as Denmark, Italy, and Spain—saw declines relative to 2013.40 The United States ranked third for additions (nearly 4.9 GW), second for cumulative capacity at year’s end (65.9 GW), and first for wind power generation (181.8 TWh) during 2014.41 The US market rebounded with a record 13 GW under construction as of early 2015.42 Texas led for capacity added (more than 1.8 GW), followed by Oklahoma, Iowa, Washington, and Colorado.43 The federal Production Tax Credit (PTC), which expired at the end of 2013, was reinstated retroactively in mid-December 2014, and expired again at year’s end.44 Canada also had a strong year, surpassing its 2013 record. It added nearly 1.9 GW, for a total of 9.7 GW, led by Ontario (adding 1 GW), Quebec (0.5 GW), and Alberta (0.4 GW).45 To the south, wind power is picking up speed in several new markets across Latin America and the Caribbean. The region added about 4.3 GW during 2014, with Mexico (0.6 GW), Chile (0.5 GW), Uruguay (0.4 GW), and Peru (adding 146 MW to its previous 2 MW) the top markets after Brazil.46 Brazil installed a record 2.5 GW, double its 2013 market, to rank fourth globally for newly added capacity.47 Growth has been so rapid that Brazil is facing challenges similar to China’s, with mismatched timing of project constructionanddevelopmentofthenecessarytransmissionlinks; it is hoped that new auction systems for transmission will resolve this issue.48 Other challenges include bottlenecks for the supply of wind turbines due to rapid growth and national content rules.49 Brazil ended the year with 5.9 GW of commissioned capacity, of which 5.6 GW was grid-connected and in commercial operation.50 Australia added nearly 0.6 GW of wind capacity, bringing its total to 3.8 GW.51 Wind energy provided 4% of Australia’s electricity in 2014.52 By early 2015, however, most investment and projects were on hold due to policy uncertainty.53 The only other country in the Pacific to add capacity was Samoa, which installed its first wind farm (550 kW).54 Turkey moved into the top 10 markets by adding 0.8 GW (after installing about 0.5 GW annually since 2010) for a total approaching 3.8 GW.55 The Middle East saw little new operating capacity of note in 2014.56 The African continent, however, installed nearly 1 GW during the year thanks to Algeria (10 MW), which commissioned its first large- scale wind farm; Egypt (60 MW); Morocco (300 MW); and South Africa, which increased its capacity from 10 MW to 570 MW in a single year.57 Morocco, with a total approaching 0.8 GW, surpassed Egypt (0.6 GW) to lead the African continent for total wind power capacity at year’s end, and both countries entered 2015 with significant amounts of capacity under construction.58 After a three-year delay due to difficulty securing financing, Kenya’s Lake Turkana (310 MW) project was moving ahead by year’s end, and projects also were under way in Ghana, Senegal, and Tanzania.59 Offshore, an estimated 1.7 GW of grid-connected capacity was added in 2014, for a world total exceeding 8.5 GW.60 The vast majority added (88%) was in Europe, where another 1.5 GW was installed for a total of 8 GW of grid-connected capacity off the coasts of 11 countries.61 The United Kingdom accounted for nearly 48% of new grid-connected installations (813 MW)—followed by Germany (529 MW), and Belgium (141 MW)—and by end-2014 the UK had more capacity connected offshore than the rest of the world combined.62 UK development is slowing, however, and developers cancelled several GW of potential projects in 2014 due to challenging conditions.63 Germany’s offshore grid-connected capacity exceeded 1 GW by year’s end, with another 1.3 GW awaiting grid connection.64 Denmark held on to second place for cumulative capacity (1.3 GW) and brought additional capacity on line in early 2015.65 Offshore development has begun in Japan, South Korea, Taiwan, and Vietnam.66 Beyond Europe, however, the only significant market is China, which added about 200 MW to its grids (nearly 230 MW installed) for a grid-connected total of 440 MW (660 MW installed).67 As of early 2015, about 6 GW of capacity was under construction in seven countries (in Asia and Europe), with construction of the first US offshore project slated to begin mid-year.68 Offshore and on land, independent power producers and energy utilities remained the most important clients in terms of capacity installed. However, there is growing interest in other sectors. The number of large corporate purchasers of wind-generated electricity and turbines continued to increase during 2014.69 In addition, interest in community- and citizen-owned wind power projects is growing in Australia, Canada, Japan, the United States, parts of Europe, and elsewhere.70

Pages Overview